gold loans

Advantages Of Gold Loan

  • No income and salary requirements- Gold loans do not demand any qualifications for income or salary of the person. So even if you are unemployed and unsalaried you can still avail of a gold loan. This is because you are pledging a valuable asset, gold in return of the money.
  • Even if you have a bad credit history and low income level, then also you can go for this kind of loan.
  • Low interest rates- The another advantage of taking a gold loan is that they are available on low interest rates, say 12-16% annually in comparison to the personal loans interest rates of 15-26% per annum.
  • Pay only the interest- The person has an option to pay only the interest during the tenure of the entire gold loan and at the end of tenure, you can pay the entire borrowed amount in a single shot.
  • Convenience- The most convenient of all the loans is gold loan because in this all you have to do is pledge your gold with a bank or a private finance institute and the work is done.You can get a loan up to 80% of its market value immediately.
  • Emotional attachment- Family jewellery carries a lot of sentimental attachment. When the men take the gold loan, there is a pressure from the women to redeem the gold as soon as possible. Most of these borrowers choose to prepay the loans and the chances of default are very unlikely.
  • Less processing time- No tedious and lengthy documentation is required in case of gold loans, hence it can be resorted to in times of urgent needs. Banks take a few hours in the processing of the gold loan whereas some NBFC's state that they only take a few minutes for the same task.

Features Of Gold Loans

  • You can avail Loan up to Rs.20,00,000 & up to 90% of value for any purpose
  • Safety & Security of your Gold Jewellery
  • Loan processed in 30 Minutes
  • ATL - Anytime Liquidity
  • No EMI, Service only Interest and enjoy the Loan facility
  • Lower Interest Rates
  • Simple documentation and fast processing.
  • Overdraft limit varies depending on the market rate of gold.
  • Interest rate is payable only amount of the overdraft that you use.

Documents required For Gold Loan

  • Proof of Identity (Passport Copy/ Voters ID card/ Driving License).
  • Address Proof (Ration card/ Tel, Electricity. Bill/ Rental Agr. / Passport copy/Trade license /Shop & Est. License/Sales Tax certificate).
  • Signature Proof (Passport Copy/Driving License/Banker's verification/cheque)
  • 2 passport size photographs.


Q. What is the meaning of gold loan ?
Banks/NBFC's provide loan and asks for the security from the person willing for the loan. Minimum of paperwork and a person receive the money immediately.

Q. What does secured loan infer ?
If a person ensures the bank to repay the loan amount then only the loan get sanctioned to the bearer, or else the person will totally lose the gold. Gold loan is essentially the receiving's against the security (gold). &n...

Q. What tenure does gold loan demand ?
The duration of gold loan is 3 to 12 months to the exact. Gold loan especially used for funding short term financial needs. A person can easily restore this loan at maturity.

Q. What is the maximum amount gold loan demand ?
In many situations, the maximum loan value does not exceed 80 % to the value of gold. Many banks work with relatively higher loan amounts, on the contrary, NBFCs deal in a small amount of loan.

Q. What interest rate would be charged on gold loan ?
The rate of interest charged by banks falls in the range of 11.5 % to 15 %. The interest rate charged by NBFC's is comparatively higher than banks. ...

Q. what is the repayment charges of gold loan demand ?
The loan can easily be foreclosed easily at any time not bearing any burden. However, in case of procrastination or improper payment of EMI's, 2 % of penal interest, banks charge.

Q. Who can have the benefit of Gold Loans?
A salaried individual between the age of 21 to 60 years, a self employed individual between the age of 21 to 75 years and even a housewife can avail the gold loan.